Gold Prices Rebound as Investors Seek Safety Ahead of U.S. Jobs Data
Gold prices rose in Asian trading on Wednesday, supported by renewed safe-haven demand as a broader risk-off mood gripped global financial markets. Traders remained cautious ahead of key U.S. private payroll data, which could offer fresh clues on the Federal Reserve’s interest rate path.
Spot gold climbed 0.9% to $3,966.56 per ounce by 00:47 ET (05:47 GMT), while U.S. gold futures edged 0.3% higher to $3,974.10. The metal had fallen nearly 2% in the previous session, marking a one-week low.
Market Fears Drive Gold’s Safe-Haven Appeal
Investor anxiety intensified after the CEOs of Goldman Sachs and Morgan Stanley warned of a potential 10–15% equity market correction, citing overvalued tech stocks and signs of a possible market bubble. Their remarks triggered steep losses on Wall Street, which spilled over into Asian equity markets on Wednesday.
The renewed volatility fueled demand for gold, widely viewed as a secure store of value during periods of financial uncertainty. However, despite Wednesday’s rebound, bullion remains under pressure due to reduced expectations of another Fed rate cut this year.
Last week, Fed Chair Jerome Powell suggested that policymakers might pause further easing, dampening hopes for a December rate reduction.
Strong Dollar and U.S.-China Easing Limit Gold’s Gains
The U.S. dollar hovered near a three-month high, making dollar-priced commodities like gold more expensive for international buyers. Meanwhile, improving U.S.–China relations have curbed safe-haven inflows, further limiting gold’s upside momentum.
Investors are now closely watching the upcoming ADP National Employment Report, due later Wednesday, for signals about labor market strength and future Fed policy. With most official data delayed by the ongoing U.S. government shutdown, the ADP report has taken on heightened importance for market participants.
Other Precious Metals Edge Higher
Beyond gold, metal markets also firmed slightly as the dollar eased.
- Silver futures rose 0.4% to $47.49 per ounce.
- Platinum futures gained 0.2% to $1,542.75 per ounce.
- On the London Metal Exchange, benchmark copper added 0.4% to $10,698.20 per ton, while U.S. copper futures climbed 0.9% to $4.97 per pound.
